Philippine Stock Exchange : Index to trade lower this week

MANILA, Philippines Share prices are expected to ease this week as investors are seen to stay on the sidelines and await for more convincing data before they take more risks, analysts said. The benchmark Philippine Stock Exchange index is seen ranging between 7,150 and 7,400 in the near-term, said Jonathan Ravelas, chief market strategist of Banco de Oro."The week's close at 7,225.39 continues to suggest the market will range between 7,150 and 7,400 in the near-term, but still biased toward a test of the 7,000 levels.Only a move above the 7,400 level would suggest otherwise," Ravelas said. Week-on-week, the stock fell 090 percent to 7,225.39 still on valuation concerns. "Renewed China concerns also spooked investors causing them to stay on the sidelines and await more convincing data to take on more risk," Ravelas said.Jason Escartin, investment analyst at 2TradeAsiacom said local equities declined due to the failure of talks among world oil producers in Doha, Qatar element-invisibleBusiness ( Article MRec ), pagematch: 1, sectionmatch: 1 He said the battle for market share would stay high on OPEC producers' list and attempted meetings might just be 'a case of who gets to blink first.' "Both Saudi and Russia are still on stalemate, with Saudi Arabia unlikely to freeze production without rival Iran playing along while Russia continues to pump oil, paying lip service to the rhetoric of cooperation in the days before and after the Doha round.That said, rallies in the oil market may only be false starts without fundamentals supporting optimismSolid signs are required at this stage to indicate demand is significantly picking up to make up for the slack," Escartin said. There are also investor concerns on the meeting of the US Federal Reserve."Consensus is high among traders, policymakers are likely to hold-off on tightening policies until the latter part of the year, when inflation data confirm a trend toward the Fed's two target. Investors will continue to heed for the expected timing and magnitude of a rate hike, depending on the progress of fresh economic data Any indication for a status quo might aid buyers, as they check on short-term trading windows in stocks," Escartin said.Escartin said the market's upside seems to have firmed up at around the 7,300 zone with the next tenable support level seen at 7,140.© Pakistan Press International, source Asianet-Pakistan

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